"Standing" is a legal term that under these circumstances, off hand I had would describe as this; a person must have an actual financial interest in an item in order to sue for it.
Because the insurance company paid for the damages, they have standing to sue. That doesn't mean they have a good case, it just means they have a financial interest.
Joe Blow down the street who paid nothing and took no loss does not have such standing. An exception would be that if the insurance company assigned the right to try to collect to something like a collection agency. Then the agency is given standing by becoming an agent for the insurance company.

